Litecoin whales deposit huge sums on exchanges, a sign of recession?

The data shows that Litecoin whales have accumulated a significant amount of assets on exchanges over the past day, which could be a bearish signal for LTC.

Litecoin Whales Create Significant Exchange Flow in 24 Hours

According to data from the cryptocurrency transaction tracker service whale alertThere have been several large transfers on the LTC blockchain in the past.

In total, there have been four such transactions, the largest of which involved the movement of 500,000 LTC (approximately $46 million at the time of transfer). while the other three interestingly all saw the same number of tokens moving on the network: 78,760 LTC (the USD value fluctuated between each of these transactions, but on average, the stack was worth $7.2 million at the time of the movement) ).

Since all of these transactions are so large, it is possible that whale entities are behind them. Whales are generally influential creatures in the market, as they carry huge sums of money in their wallets. Thus, attention should usually be paid to their movements, as they may precede price volatility.

Naturally, how the price may be affected by the transfer of these huge investors depends on what exactly they were looking to achieve with said transaction.

Here are some additional details regarding today’s biggest transfers that may help shed some light on the context surrounding it:

Looks like this LTC transfer required a negligible fee to go through | Source: Whale Alert

As you can see above, in the case of this Litecoin transfer the sending address was an unknown wallet, meaning it was not associated with any known centralized platform. Such addresses are usually private wallets of investors.

On the other hand, the recipient address was linked to a centralized platform: cryptocurrency exchange Binance. Such transfers where coins move from self-custodial wallets to exchanges are referred to as “exchange flows”.

Typically, a major reason holders deposit their coins at exchanges is for sales-related purposes, so exchange inflows can have a bearish effect on the price.

It is possible that the whale has also deposited it here with the same intention. Naturally, if this is indeed the case, given the scale of the transaction, this could see a negative effect on the price.

As for the other three transactions, which were of exactly the same scale, two of these transfers were inflows similar to this one, while the remaining one was outflow.

Two of these transfers (both flows) shared the same sending and receiving addresses, making it likely that the same whale may be behind the deposits.

The received address of the outflow does not match any of today’s transactions, so it is unknown whether it is related to them or not. However, this includes the same coins as the two arrivals, so it raises suspicions that the same whale entity may have been behind it.

In any case, one reality persists: net inflows totaled $53.2 million over the past 24 hours, which could act as a source of significant selling pressure in the cryptocurrency market.

ltc price

At the time of writing, Litecoin is trading around $91, down 6% over the past week.

LTC has slipped down recently | Source: LTCUSD on TradingView

Featured Image from Kanchanara on Unsplash.com, Chart from Tradingview.com